HCS HB 552 -- ASSIGNMENTS OF CERTIFICATES OF TITLE

SPONSOR:  Ervin

COMMITTEE ACTION:  Voted "do pass" by the Committee on Small
Business by a vote of 10 to 0.

This substitute allows licensed motor vehicle dealers to buy and
sell motor vehicles without a contemporaneous assignment of the
certificate of title.  A procedure is established to allow
dealers to obtain a duplicate or replacement title in the owner's
name, with a power of attorney from the owner, and to sign title
assignments on the owner's behalf if the title has been lost,
stolen, mutilated, or destroyed.

The liability and damages for the fraudulent misrepresentations
by sellers or dealers are specified in the substitute.

FISCAL NOTE:  No impact on state funds in FY 2006, FY 2007, and
FY 2008.

PROPONENTS:  Supporters say that the process of conveying titles
to vehicles has changed dramatically in recent years.  The
consolidation of financial institutions has slowed down the
process of moving the actual title certificates.  A national bank
that holds a lien on a car can take weeks, even months, to send
the title when it's paid off as part of a trade-in for a new car.
This slow process hampers the dealer's ability to sell cars
quickly and efficiently.  Spot delivery (actually giving the
buyer the keys to a car) is very important to successful auto
sales.  Requiring the actual certificate to be handed over at the
time of the sale causes dealers to lose sales.  The bill protects
purchasers and lien holders of the vehicles, but allows dealers
to sell these vehicles in an efficient manner.

Testifying for the bill were Representative Ervin; and Missouri
Automobile Dealers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Richard Smreker, Senior Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 1st Regular Session
Last Updated August 25, 2005 at 1:19 pm